The Market in Brief:
Market Events Due:
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AUD/USD: After a relatively quiet day yesterday, the AUD came to life overnight, posting strong gains against the USD. This was mainly impart to weaker than expected US retail sales figures, coupled with a weaker producer price index print. These weaker than expected figures have cast further doubt on a US interest rate hike taking place this year. All eyes will be on domestic unemployment figures today, while this evening we look toward US inflation numbers for further guidance on the state of the US economy.
AUD/NZD: The Kiwi has strengthened overnight on the back of poor figures out of the US. Not even comments from governor Wheeler, who hinted at further rate cuts, could stop the march of the Kiwi. Comments by Wheeler that suggest the RBNZ is likely to take a more hands-off approach to monetary policy, helped boost the Kiwi. Domestic manufacturing data today will be keenly watched, as will US inflation data this evening.
AUD/GBP: The Sterling enjoyed a strong rally overnight, as weak US data, coupled with a reduction in domestic unemployment figures fuelled demand for the Sterling amongst investors. Little in the way of domestic data out of the UK this evening, so investor attention will turn toward US inflation figures.
AUD/EUR: The EUR was also one to benefit from poor data out of the US, as investor’s appetite for risk aversion pushed investors toward the common currency. The EUR gained strong support amongst investors, mainly due to easing Federal reserve hike expectations. No major data of note out of the EU this evening, so attention will again turn towards US inflation figures, with weaker figures expected to push the EUR even higher.
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